Used EVs have never been cheaper. But are they a good deal?

Transactions on used electric vehicles are shocking.

In 2017, a whole new Nissan Leaf brought a price of around $ 35,000; Today, this same car belongs to you at less than $ 6,500. This story is repeated on the market. A Hyundai Kona which left the floor of the exhibition hall in 2021 for more than $ 43,000 fell below $ 16,000. Even new models are not spared from this type of damping. Take the Hyundai Ioniq 5 2024: he made his debut with a sticker close to $ 62,000, but after 8,000 miles and less than 12 months on the road, at least one sells about $ 37,000. The drops are even more striking in the luxury segment. An Audi e-tron GT supercar which costs around $ 124,000 only three years ago is now offered at $ 52,000. All of this is before government incentives that could further reduce costs.

In August, the fall in prices sparked an increase of 59% from one year to the next in the sales of EV USE, according to the COX Automotive research company. But the trend also raises the question of whether even well-being electric vehicles are a bad investment in an asset that will continue to depreciate at an alarming rate. Experts say it depends on the car and how the buyer would use it.

“I would buy one now,” said Stephanie Valdez Stream, director of industry information at Cox Automotive. In August, used electric cars generally cost about $ 900 more than similar gas, she added, which is the lowest gap ever recorded. It is a bonus which is probably easily made up of gas savings and much lower maintenance costs, because electricity will not need, for example, oil changes. “There is a very strong value proposal to buy a used electric vehicle,” said Valdez Streaty.

But even a significant discount may not be sufficient for some people to shake their previous experiences or perceptions on electric cars, said John Helveston, engineer and professor at George Washington University who studies the adoption of technology. As he said, “if you bought a used sheet a few years ago, your experience was probably not excellent.”

Indeed, until recently, the batteries were often deteriorated quickly, which led to untenable driving ranges and often regrettable purchases. But Helveston said the landscape has radically changed, with a trend towards more effective technologies and larger packs that do not deteriorate so quickly. However, most guarantees are not embarking on once the capacity has fallen below 70%. Thus, Helveston said, the original range of the car remains critical and is one of the best indications of the speed with which it could depreciate.

“If you are less than 200 miles as a new starting line, they do not hold their value very well,” he said. Conversely, which is why Teslas – with ranges in the kingdom of 300 or 400 miles – has historically depreciated much more slowly.

The other good news is that, although research, by Helveston and others, has shown that electric vehicles are depreciated much faster than gas vehicles in the first two to three years; After that, converging decline rates and all cars lose value at a similar pace.

Read

The quarter of an electric vehicle could prevent millions of childhood asthms

Incitations are another factor to consider. Currently, a buyer qualified in income can obtain up to $ 4,000 in federal tax credit on an EV used at less than $ 25,000, or up to $ 7,500 for a new one. Many states, municipalities and public services also offer discounts. But federal credits disappear at the end of the month, which could increase the prices of electric cars. On the other hand, an escape in these incentives has led to an overabundance of rented electric vehicles, more than a million of which should strike the market used in the coming years – which could exert downward pressure on prices. We do not know how all these elements will interact.

“There is no crystal ball on this subject,” said Kevin Roberts, director of economic intelligence and market on the Cargurus website, by e-mail. “But given the recent trends, we do not expect to see the volatility of prices in used electric vehicles that we have seen in the past.”

The bad news is that shopping for used electric vehicles can be a little black box.

“With a gas car, between age and mileage, you know a lot about this car. In the VE, people have no idea,” said Helveston. The health of the battery, he explained, is more linked to the way the car was used than its age or its mileage. If, for example, an owner only used ultra-fast level 3 chargers, the battery would take many more beats than someone who mainly loaded his garage. In addition, even with recent battery technology improvements, it is always difficult to predict exactly how a battery will be done at five or 10 years.

“There is this huge information gap and because of this, there is an hesitation in buying it,” said Helveston. However, there are certain things that people can do to alleviate these concerns. The first is to ask the dealer or the seller to charge a car to a 100% capacity before the test. Then compare the range on the dashboard with the manufacturer’s declared figure when the car was new. This should provide an approximate approximation of the remaining battery capacity. After a few years, the pack should keep 90 to 95% of its note.

Valdez Stream, at COX, said that it was not uncommon for dealers to be or do not know how to access battery health information, although this process can become more standardized in the years to come. In the meantime, she says, the second -hand car auction that Cox operates – Manheim – assesses the batteries on a scale of 1 to 100. It is the largest auction network in North America and is used by many dealers, which may be able to transmit all the information they receive on the battery.

“You certainly want something that will be more than 80%,” she said.

The other option is to ignore the range or damping and buy the cheapest car as possible and drive it to the ground. It works well for people who only need a car in the city – most people do not drive more than 40 miles per day – and do not care about functionality. This is what Helveston did when he bought a ten -year sheet on Facebook Marketplace for $ 5,000. It had a range remaining only 60 miles, but it does not drive more than 30 a day.

“The kilometers are double what I need,” he said, and he also does not pay for gas or petroleum changes. “If he dies in me, I only invested five great inside and I will buy another.”